Zynga stock sinks after lowered 2012 outlook

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Associated Press

Posted on October 5, 2012 at 10:00 AM

Updated Friday, Oct 5 at 10:02 AM

NEW YORK (AP) — Troubled Zynga's stock is trading near its lowest level ever Friday after the online game maker behind "FarmVille" forecast a third quarter loss amid weak demand. It's also taking a hefty charge related to its March acquisition of mobile game company OMGPop.

Zynga Inc. said late Thursday that it expects to post a loss for the third quarter, largely because of the $85 million to $95 million charge on the OMGPop purchase. It bought the company behind "Draw Something" for $183 million.

Baird analyst Colin Sebastian says Zynga's transition from Web-based Facebook games to mobile is "more painful than expected."

Zynga's stock is down 19.3 percent at $2.27 in late morning trading. It hit an all-time low of $2.21 earlier. The San Francisco company went public Dec. 16.

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